Lease expiry in 10 years
30% expansion required
Landlord proposal above market
39,000 SQ. FT.
When Bird approached their landlord about leasing an additional 10,000 sf to accommodate a new growing division in the company they had 10 years remaining on their existing lease. Initial negotiations with the landlord did not reflect market because the landlord assumed the tenant would pay a premium rent to expand in the building.
The Occupier team determined the expansion space did not have to be in the same building so recommended an RFP in the marekt. This strategy convinced the incumbent landlord to reconsider their initial financial proposal. To encourage the landlord to do a market transaction the Occupier team proposed renewing Bird’s existing lease for 30,000 square feet 10-years prior to their lease expiry and lease an additional 10,000 square feet.
In addition to expanding by 30% Bird did a ‘blend and extend’ on their lease 10-years prior to their lease expiry, leased an additional 9,416 square feet for 15 years at rates that declined over the new term and was able to obtain market incentives not previously offered by the landlord.